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S&P 500

S&P 500 Definition

An index that is made up of 500 stocks of major companies selected by market size, industry, and liquidity. The index is market value weighted, with every stock’s weight in proportion to its market value. The indexes performance is generally thought to be representative of the U.S. stock market as a whole.

The S&P 500 industry breakdown:

400 industrial firms,
40 financial firms,
20 transportation firms,
40 utilities


Additional meaning of S&P 500:

Standard & Poor’s is a group of the 500 most widely held stocks. This index was created in 1957 and its performance is considered to be representative of the entire market.  The majority of American stocks (over 70%) are monitored by the S&P 500.  This index tracks mainly mid to large sized companies.


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Related Links

S&P 500 - List of S&P 500 companies



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